Back to index
V1181-25 1 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption not applicable if property not habitual residence in two years prior

A taxpayer asks whether the reinvestment exemption applies after selling a property where they resided until 2018. The DGT responds that it is not possible because the property was not their habitual residence at the time of sale or in the two years preceding it.

The question raised

To determine whether the exemption for reinvestment in a primary residence may be applied to the capital gain obtained from the sale.

The DGT's ruling

To apply the exemption, the transferred property must be the primary residence at the time of sale or have been so during the two preceding years. In this case, as residency in the property ceased in 2018, the requirement of habitual residence required by Article 41 bis of the RIRPF is not met. Exceptional circumstances regarding a change of domicile only serve to consider a property as habitual if the three-year period of continuous residence has not been completed.

Book your free first meeting